Kolibri Global Energy Inc. Q2 FY2025 earnings call

• Production from the field has been good with second quarter over 3,200 BOE a day despite some well shut-ins for Lovina well completions.
• Operating expenses remain low at $7.15 per BOE.
• Increased line of credit with banking syndicate led by Bank of Oklahoma.
• Brought on 4 Lovina wells with high oil percentage, testing Ferguson well and spudding 2 new wells.
• Anticipate 9 new wells to start production in the second half of the year, expecting significant production and cash flow increase.
• Intend to continue returning capital to shareholders via share buybacks, having purchased about 130,000 shares in July.

Second quarter average production was 3,220 BOE per day, up 3% from the prior year quarter, though temporarily reduced by 540 BOE per day due to Lovina well completions. Net revenue decreased 22% to $10.8 million due to lower prices and lower oil production from shut-in wells. Adjusted EBITDA was $7.7 million, down 23% from the prior year quarter. Year-to-date June average production was 3,646 BOE per day, up 13% from the prior year period. Net revenue decreased slightly by 3% to $27.2 million. Adjusted EBITDA was $20.5 million,持平 with the prior year quarter. Credit facility borrowing base increased 30% to $65 million from $50 million.

• Anticipate significant increases in both production and cash flow in the last 2 quarters of the year due to 9 new wells starting production in the second half.
• Currently, no rethinking of original production guidance so far, will monitor if changes occur.
• Based on type curves from Netherland, Sewell, believes existing wells can make good money even in $60 oil price range and plan to proceed with completions as scheduled.

Q: Given the timing of the Lovina wells coming online and the expectations with those 2 more wells and the completion scheduled, any thoughts on the original production guidance?

A: Not so far. Will monitor; if something changes guidance, will put out, also price dependent Q: Speaking to that, given the oil price environment and where the share price is now, any thoughts in altering near term capital allocation plans, slow down completions maybe and focus on buyback?

A: Right now going forward as is; based on type curves, thinks wells can make good money at current prices, can delay completions if needed but not anticipating that now, plan to complete as scheduled Q: In terms of the Lovina wells, noted higher liquids content. Any surprise? Does that shift where you might drill next or how you completed them?

A: No, offset wells were a little higher, this part of the field had lower gas oil ratio than anticipated but not far off, encouraging, high hopes for tubing in and low declines Q: Any thoughts on the Forguson well and how you're thinking about the East side acreage?

A: Got all stages off on completion side, effective stimulation, now in mother nature's hands as far as flowback and rates